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Pg 34 03.14 • W w © Agnieszka Pastuszak-Maksim/ iStock/Thinkstock pg 34 03.14 • www.ift.org w BY KELLY HENSEL Keeping Consumers Sweet on Frozen Treats Although ice cream and frozen novelties are mature categories, they keep reinventing themselves through new flavors, snackDd formats, and healthier options. rom the days when only the wealthy the market research firm forecasts Figure 1. Total U.S. sales and forecast of ice cream and could afford it, to the popularity of steady growth for sales through 2018 to frozen novelties, at current prices, 2008–2018. From Fsoda fountains in the late nineteenth reach $12.8 billion (Figure 1). Mintel, Ice Cream and Frozen Novelties U.S. Report, July 2013 century and ice cream trucks in the These figures only account for retail $ in millions % change early twentieth century, and finally, sales, but certainly foodservice sales of 2008 10,231 - thanks to refrigeration technologies, ice cream suffered as well during the mass production in the 1940s and recession. Consumers often cut back on 2009 10,363 1.3 1950s, ice cream has been the quintes- desserts when money is tight, or turn to 2010 10,251 -1.1 sential treat. It is an indulgence icon more affordable options, such as private 2011 10,669 4.1 consumed, in one form or another, by label bulk varieties. Euromonitor pre- 2012 10,981 2.9 87% of American adults (Mintel, 2013). dicts that with an improving economy, 2013* 11,173 1.7 In fact, according to NPD, 55% of foodservice sales of ice cream will grow. Americans have consumed ice cream or “We’ve found that when the economy is 2014** 11,470 2.7 a frozen novelty at least once in the past better people tend to treat themselves 2015** 11,797 2.8 two weeks. It’s obvious that the ice by going out for ice cream,” said 2016** 12,101 2.6 cream and frozen novelties category Virginia Lee, Senior Research Analyst 2017** 12,448 2.9 remains stable; however, it is a mature at Euromonitor International. “People 2018** 12,814 2.9 market under pressure by various fac- also tend to treat themselves to ice tors. To succeed in the market, cream when they’re on vacation, Sources: Based on Information Resources Inc., InfoScan Reviews; Bureau of Labor Statistics, Consumer manufacturers of ice cream and frozen whether it’s a day trip or long vacation.” Expenditure Survey; U.S. Census Bureau, Economic novelties must offer innovative flavors, While the foodservice environment Census/Mintel. * Estimate **Forecast create new occasions for consumption, has seen a proliferation of new out- offer healthy options where appropriate, lets—focused primarily on the and maintain affordability. popularity of frozen yogurt—Harry yogurt, such as Pinkberry, Red Mango, Balzer, Chief Industry Analyst and Vice Menchie’s, and Orange Leaf, the seg- Sales Grow Slowly President at The NPD Group, stressed ment saw a slew of new product releases As with all segments of the food indus- that the majority of consumption takes in the supermarket freezer case. Mintel Bunyawattana/Thinkstock Pornchai © try, ice cream is not immune to place at home. “Only 16% of consumers reports strong growth of 74.2% from economic conditions. The category are eating ice cream away from home,” 2011 to 2013. However, it should be experienced a dip in U.S. sales in 2010 said Balzer. noted that while the growth was signifi- due to the recession. Mintel predicted cant, frozen yogurt still only makes up U.S. sales for 2013 to total $11.2 bil- Fro-Yo Craze 4% of retail sales in the ice cream/fro- lion—a 1% loss from 2009 sales when Spurred by the popularity of new food- zen novelties category. Mintel forecasts taking inflation into account. However, service outlets focused on frozen continued growth in the frozen yogurt 03.14 • www.ift.org 35 pg Keeping Consumers Sweet on Frozen Treats Healthy halo. The popularity of novelty—a stick, bar, etc.—may posi- frozen yogurt is noteworthy because it tion the product more as a snack than a points to some overarching consumer dessert. This may also prove successful trends affecting every aspect of the food since many frozen yogurt products are industry. First, it addresses consumers’ not positioned as alternatives to ice growing desire for healthier food prod- cream, but instead as their own unique, ucts. Yogurt, especially Greek yogurt, tart-flavored product. has lower fat and higher protein content “I don’t think frozen Greek yogurt than traditional ice cream. In addition, should be positioned as an indulgent products such as the Yoplait Greek Low Fat dessert,” said Donna Berry, Consultant Frozen Yogurt Bars market the product’s and Owner of Dairy and Food live and active cultures, which consum- Communications Inc. “I think it should Ice cream makers have noted the recent explosion in Greek yogurt in the ers are familiar with in the spoonable be positioned as a meal replacement or a dairy aisle and have launched frozen Greek yogurt products to capitalize yogurt format. health snack.” on the trend. Photo courtesy of Turkey Hill Companies are also adding to this However, there are still some pro- health halo for their frozen yogurt prod- ducers walking the line between health segment through 2018, although much ucts by incorporating ingredients that and indulgence by offering frozen slower than the high growth it saw in consumers already deem healthy. yogurt in decadent flavors, aimed at 2012 and 2013. Overall, the segment is Fruits—such as blueberry and straw- taking some of the dessert share away estimated to reach sales of $747 million berry—offer a natural connection to from ice cream. Turkey Hill Dairy, for by 2018 (Mintel, 2013). health for consumers. Apollo Food example, will roll out four limited-edi- Frozen yogurt is a natural extension Group’s popular Yasso brand launched its tion flavors of Greek frozen yogurt this of refrigerated spoonable yogurt prod- Coconut Flavored Frozen Greek Yogurt Bars year. Currently, consumers can find ucts, which reached $5.7 billion in sales in April 2013. Not only does this prod- Turkey Hill’s Baklava Greek Frozen Yogurt, in 2011, up 40% from 2007 (Mintel, uct contain low calorie and high in which contains vanilla Greek frozen 2012). Food companies have noted the protein claims, but it also contains coco- yogurt with crunchy baklava pieces and recent explosion in Greek yogurt in the nut, which plays into the current trend a honey cinnamon swirl, in the freezer dairy aisle and have launched frozen in coconut water that consumers view case. Later in the year, the company Greek yogurt products to capitalize on as healthy. will introduce Lemoni Biskoti, Raspberry the trend. “I think that just as in the Snackability. The immense growth Chokolata, and Sea Salt Caramel Truffle. dairy aisle, the Greek yogurt varieties that the segment has seen recently While containing more fat and calories within frozen yogurt will be leading the means that marketers can no longer dif- than other Greek frozen yogurt prod- sales for the next few years,” said Lee. ferentiate themselves by simply offering ucts, they offer more protein than New frozen Greek yogurt products frozen yogurt. They will have to stand traditional frozen yogurt and ice cream. have been launched by ice cream and out by introducing unique flavors and It is up to consumers how healthy or yogurt makers alike. For example, in formats. This gives manufacturers the indulgent they want to be. 2012, Ben & Jerry’s, known for its pre- opportunity to tap into another over- mium ice creams, introduced a frozen arching consumer trend—snacking. We All Scream For Ice Cream Greek yogurt. In addition, Yoplait—a Consumers are eating fewer formal The frozen yogurt segment has grown leader in the spoonable yogurt cate- meals and, instead, are snacking more over the last few years, but when it gory—launched Greek Low Fat Frozen throughout the day. Offering a frozen comes to an indulgent dessert, most Yogurt Bars. yogurt product in the form of a frozen consumers turn to ice cream. According to Mintel, ice cream domi- Figure 2. Total U.S. retail sales of ice cream and frozen novelties, by segment, at current prices, 2011 and 2013. nates the category with 53.4% of sales, From Mintel, Ice Cream and Frozen Novelties U.S. Report, July 2013 followed by frozen novelties with 40% (Figure 2). However, the category has 2011 Sales Market Share 2013 Sales* Market Share % Change suffered from a dip in sales due to the $ in millions % of total $ in millions % of total 2011–2013 economic downturn, an expanding Ice cream 5,741 53.8 5,967 53.4 3.9 array of snacks offered throughout the Frozen novelties 4,391 41.2 4,465 40.0 1.7 retail store, a lack of product innova- Frozen yogurt 279 2.6 486 4.3 74.2 tion, and the popularity of frozen yogurt. While vanilla and chocolate are Sherbet/sorbet/ices 258 2.4 255 2.3 -1.2 expected to remain the most popular Total 10,669 100 11,173 100 4.7 flavors, ice cream companies know that *Estimated Sources: Based on Information Resources Inc., InfoScan Reviews; Bureau of Labor Statistics, to differentiate themselves, they have to Consumer Expenditure Survey; U.S. Census Bureau, Economic Census/Mintel produce new and exciting flavors. »» pg 36 03.14 • www.ift.org Keeping Consumers Sweet on Frozen Treats For example, in November 2013, “They are portraying to the cus- Blue Bell Creameries announced that it tomer that we have a chef that’s creating would be releasing its Holiday Favorites these flavors for you so you can have a line of ice cream, which included Fudge dessert experience rather than just a Divinity, Christmas Cookies, Peppermint, dish of ice cream,” explained Cary Frye, and Spiced Pumpkin Pecan.
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